DoD's $61.2M Panama City Beaches project awarded to Great Lakes Dredge & Dock Co. for coastal storm risk management

Contract Overview

Contract Amount: $61,235,519 ($61.2M)

Contractor: Great Lakes Dredge & Dock CO, LLC

Awarding Agency: Department of Defense

Start Date: 2021-02-12

End Date: 2023-12-31

Contract Duration: 1,052 days

Daily Burn Rate: $58.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REHABILITATION EFFORT FOR THE PANAMA CITY BEACHES COASTAL STORM RISK MGMT PROJECT, PANAMA CITY, FLORIDA.

Place of Performance

Location: PANAMA CITY, BAY County, FLORIDA, 32401

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $61.2 million to GREAT LAKES DREDGE & DOCK CO, LLC for work described as: REHABILITATION EFFORT FOR THE PANAMA CITY BEACHES COASTAL STORM RISK MGMT PROJECT, PANAMA CITY, FLORIDA. Key points: 1. Contract awarded for critical coastal storm risk management infrastructure. 2. Project aims to enhance resilience against storm damage in Panama City, Florida. 3. Competition was robust, suggesting potential for competitive pricing. 4. Contract type is Firm Fixed Price, offering cost certainty. 5. Project duration spans over two years, indicating a significant undertaking. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: good

The contract value of $61.2 million for the Panama City Beaches Coastal Storm Risk Management Project appears reasonable given the scope of heavy civil engineering construction. Benchmarking against similar large-scale coastal defense projects is challenging without more specific details on the exact nature of the rehabilitation and the scale of the storm risk mitigation. However, the firm fixed-price nature of the contract provides a degree of cost predictability for the government. The award to Great Lakes Dredge & Dock Co., LLC, a known entity in this sector, suggests a level of confidence in their capability to deliver.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bidders suggests a healthy level of competition for this significant civil engineering project. This competitive environment is generally favorable for price discovery and can lead to more cost-effective outcomes for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is expected to drive down costs and ensure the government receives the best value for its investment in coastal storm risk management.

Public Impact

Residents and businesses in Panama City, Florida, will benefit from enhanced protection against coastal storm damage. The project delivers vital infrastructure improvements to the beaches, crucial for tourism and local economy. Geographic impact is concentrated in Panama City, Florida, addressing specific regional vulnerabilities. The project supports the construction and engineering workforce involved in heavy civil engineering projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite firm fixed-price contract.
Dependence on a single contractor for a critical infrastructure project.
Environmental impacts during construction phase require careful monitoring.

Positive Signals

Firm fixed-price contract provides cost certainty.
Award to an experienced contractor in the dredging and marine construction field.
Full and open competition suggests a competitive award.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically focusing on coastal storm risk management. This sector is critical for national infrastructure, particularly in areas vulnerable to natural disasters. Spending in this area often involves large-scale projects with significant lead times and specialized equipment. Comparable spending benchmarks would typically involve other major coastal defense, levee, or port construction projects, which can range from tens to hundreds of millions of dollars depending on scale and complexity.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This means that the primary contract was awarded to a large business, and opportunities for small businesses would likely depend on the prime contractor's own subcontracting decisions. Without explicit set-aside goals, the direct impact on the small business ecosystem for this specific contract may be limited.

Oversight & Accountability

The contract is managed by the Department of the Army, likely through its engineering and construction oversight bodies. Oversight mechanisms would typically include project management, site inspections, and financial reviews to ensure compliance with contract terms and performance standards. Transparency is generally maintained through contract award databases and public reporting, though detailed project-specific oversight activities may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Coastal and Hydraulics Engineering
Disaster Mitigation and Infrastructure Projects
Beach Renourishment and Protection Projects

Risk Flags

Potential for environmental impact during construction.
Risk of encountering unforeseen subsurface conditions.
Weather-related delays could impact project timeline.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.2 million to GREAT LAKES DREDGE & DOCK CO, LLC. REHABILITATION EFFORT FOR THE PANAMA CITY BEACHES COASTAL STORM RISK MGMT PROJECT, PANAMA CITY, FLORIDA.

Who is the contractor on this award?

The obligated recipient is GREAT LAKES DREDGE & DOCK CO, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $61.2 million.

What is the period of performance?

Start: 2021-02-12. End: 2023-12-31.

What is the track record of Great Lakes Dredge & Dock Co., LLC with similar federal contracts, particularly those involving coastal storm risk management?

Great Lakes Dredge & Dock Co., LLC has a significant history of performing large-scale marine construction and dredging projects for various federal agencies, including the U.S. Army Corps of Engineers. They have been involved in numerous coastal restoration, beach nourishment, and navigation channel deepening projects across the United States. Their experience often includes complex environmental considerations and working in challenging coastal environments. While specific performance metrics for past contracts are not detailed here, their consistent bidding on and winning of substantial federal contracts in this domain suggests a generally positive track record and established capability in executing projects of this nature. Reviewing past performance evaluations and contract close-out reports for similar projects would provide a more granular assessment of their reliability and quality of work.

How does the awarded amount of $61.2 million compare to the estimated cost or budget for the Panama City Beaches Coastal Storm Risk Management Project?

The provided data indicates an award amount of $61,235,519.48. Without access to the government's initial cost estimates, independent government cost estimates (IGCE), or pre-solicitation budget information for the Panama City Beaches Coastal Storm Risk Management Project, it is difficult to definitively compare the awarded amount to the anticipated budget. However, the fact that the contract was awarded under full and open competition with four bidders suggests that the bids received were likely within a reasonable range of the government's expectations. If the bids significantly exceeded the IGCE, it might indicate an underestimation by the government or an overly optimistic bid from the contractors. Conversely, a bid well below the estimate could signal aggressive pricing or potential risks not fully accounted for by the bidders.

What are the primary risks associated with the execution of this coastal rehabilitation project, and how are they being mitigated?

Key risks for this coastal rehabilitation project include unforeseen subsurface conditions (e.g., encountering unexpected soil types, debris, or archaeological artifacts), adverse weather events disrupting work schedules, potential environmental impacts (e.g., sediment plumes, impact on marine life), and contractor performance issues. Mitigation strategies likely involve thorough geotechnical investigations prior to construction, contingency planning for weather delays, strict adherence to environmental monitoring and protection plans, and robust contract administration by the Army Corps of Engineers. The firm fixed-price contract structure also incentivizes the contractor to manage costs and risks effectively to maintain profitability. Performance bonds and regular progress reviews are standard mechanisms to ensure contractor accountability.

What is the expected effectiveness of this rehabilitation effort in managing coastal storm risks for Panama City, Florida?

The effectiveness of the rehabilitation effort hinges on the specific engineering solutions implemented within the project's scope, which are not detailed in the provided data. Generally, coastal storm risk management projects aim to reduce the impact of storm surges, wave action, and erosion. This can involve measures such as beach nourishment (adding sand), construction of protective structures (like seawalls or groins), dune restoration, or a combination thereof. If the project successfully implements proven engineering techniques tailored to Panama City's specific vulnerabilities (e.g., susceptibility to hurricane surge), it is expected to significantly enhance the resilience of the coastline, thereby protecting public infrastructure, private property, and natural habitats from storm damage. The long-term effectiveness will also depend on ongoing maintenance and potential future adaptation strategies.

How does the historical spending on coastal storm risk management projects by the Department of Defense compare to this specific contract's value?

The Department of Defense, primarily through the U.S. Army Corps of Engineers (USACE), invests substantial funds annually in coastal storm risk management and related civil works projects. Annual USACE civil works budgets often run into billions of dollars, with a significant portion allocated to coastal protection, navigation, and flood control. A single contract of $61.2 million for a specific project like the Panama City Beaches rehabilitation is a considerable investment but represents a fraction of the overall federal spending in this domain. Historical spending patterns show a consistent need for such projects, often driven by increasing frequency and intensity of storms, sea-level rise, and the need to protect critical military installations and adjacent civilian communities located in coastal areas. This contract aligns with the broader federal commitment to infrastructure resilience.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W9127820B0004

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Great Lakes Dredge & Dock Corporation

Address: 9811 KATY FWY STE 1200, HOUSTON, TX, 77024

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $61,235,519

Exercised Options: $61,235,519

Current Obligation: $61,235,519

Actual Outlays: $11,315,348

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline